When One Person Is Responsible for All Related Activities, the Potential

question 129

True/False

When one person is responsible for all related activities, the potential for errors and irregularities increases.

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Definitions:

Shift of Assets

The reallocation or transfer of assets from one part of a company to another, or between companies, which can affect financial statements and tax liabilities.

Composition

An artistic arrangement of elements within a work of art, or the structure and arrangement of various components in a written document or piece of music.

Total Assets

The sum of everything of value owned by a business, including cash, property, inventory, and equipment.

Accounting Equation

Represents the foundation of double-entry bookkeeping, stating that assets equal liabilities plus owners' equity.